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Monday, January 21, 2008
Turboprop Rentals Continue to Remain Strong
While there may be hiccups for the turboprop sector in terms of the disposal of the SAS Bombardier Q400 fleet, the overall turboprop market remains strong as evidenced by the stream of new orders, according to RAN’s sister publication Aircraft Value News.
With respect to longer-term residuals the current crop of turboprops are likely to face challenges from a new generation of derivatives and even replacements. However in the short term, the pressure on fuel prices will continue to see existing models in considerable demand.
Bombardier is expected to suffer a temporary blow from disposal of the SAS fleet. As the situation was more a consequence of the needs of the airline to initiate a response to the high-profile landing incidents, the wider market is taking a more relaxed view of the difficulties. The surplus aircraft emanating from SAS are expected to be placed into service with other operators within a matter of months, not precluding any difficulty in unraveling financial arrangements.
For a complete analysis, including valuations by aircraft type, check out the latest issue of Aircraft Value News.
With respect to longer-term residuals the current crop of turboprops are likely to face challenges from a new generation of derivatives and even replacements. However in the short term, the pressure on fuel prices will continue to see existing models in considerable demand.
Bombardier is expected to suffer a temporary blow from disposal of the SAS fleet. As the situation was more a consequence of the needs of the airline to initiate a response to the high-profile landing incidents, the wider market is taking a more relaxed view of the difficulties. The surplus aircraft emanating from SAS are expected to be placed into service with other operators within a matter of months, not precluding any difficulty in unraveling financial arrangements.
For a complete analysis, including valuations by aircraft type, check out the latest issue of Aircraft Value News.

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